StoneCo Ltd.

Good evening, ladies and gentlemen. Thank you for standing by. Welcome to the Stone Company's second quarter 2022 earnings conference call. By now, everyone should have access to our earnings release. The company also posted a presentation to go along with this call. All material can be found at www.stone.com on the investor relations section. Throughout this conference call, the company will be presenting non-IFRS financial information, including adjusted net income and adjusted free cash flow. These are important financial measures for the company but are not financial measures as defined by the IFRS. Reconciliations of the company's non-IFRS financial information to the IFRS financial information appears in today's press release. Finally, before we begin our formal remarks, I would like to remind everyone that today's discussion might include forward-looking statements. These forward-looking statements are not guarantees of of future performance, and therefore you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from the company's expectations. Please refer to the forward-looking statements disclosure in the company's earnings press release. In addition, many of the risks regarding the businesses are disclosed in the company's Form 20F, Solid Waste Securities and Exchange Commission, which is available at www.sec.gov. I would now like to turn the conference over to your host, Rafael Martin, VP of Finance and Investor Relations at Stowe Company. Please go ahead.

Thank you, Operator, and good evening, everyone. Joining us today on the call, we have our CEO, Thiago Piau, and our Chief Strategy Officer, Lia Matos. Today, we will present our second quarter 2022 results, discuss some recent trends, and provide an updated outlook for our business. I will now pass it over to Thiago so he can share some highlights of our performance. Thiago?

Thank you, Rafa, and good evening, everyone. In the second quarter, we demonstrated consistent execution, combining strong growth with improving profitability. We produced this strong performance in both TPV and revenue growth, while improving our operating margins in both of our segments. We achieved total revenue of 2.3 billion reais, which was 5% above our guidance and up 83% year over year, excluding the negative revenue impact from the credit product in the second quarter 2021 and pro forma for links. On the profitability front, our adjusted EBT margins increased sequentially from 4% in the first quarter to 4.6% in the second quarter, driven by improved operating efficiency in our financial service and in our software businesses. As we noted previously, following the partial sale of our stake in Banco Inter, we decided to stop adjusting the bond financial expenses in our results from the second quarter onwards. As a result, our adjusted EBT in the second quarter reached 107 million reais, 19% higher than our guidance of over 90 million reais. In our financial services segments, we were specially encouraged by five factors. First, the strong evolution of our payments client base, which crossed the 2 million mark with an acceleration of net ads in the quarter. Second, the strong MSNB CPV growth of 78% year over year, driven by both our active client base growth and a continued improvement in go-to-market strategy for tone and stone products. Third, we were able to continue increasing our take rates while we increased our average CPV for both stone and ton products sequentially. Fourth, the expansion of our banking platform, generating more engagement and increasing opportunity to monetize clients in the future. And finally, efficient gains in cost and expenses. As a result, the financial services segment revenue grew 3.4 times year over year and 102% excluding the effects associated with the credit product last year. At the same time, EBT margins in the segment increased 3.8% in the first quarter to 4.3% in the second quarter. In our software segment, revenue growth performance for Lynx reached 23%, mostly driven by a strong performance in our core software. I'm encouraged by the margin evolution in software, with sequential improvement of almost 300 basis points in EBITDA margin, which reached over 15% in the quarter. This improvement was the result of continued efficiency gains and back-off synergies, even though we continue to invest in our distribution, customer service, and marketing capabilities. We expect to continue ramping up our software margins in the second half of the year. I'm pleased with the consistency and direction of our results in the second quarter, and I think this is a solid step forward to producing strong results by year-end. Looking to the second half of the year, we will maintain our focus on building on these achievements. With that said, I will now pass it over to Lia, who will provide more details about our second quarter performance and strategic updates. Lia?